Porsche Ranked Highest In NADA’s Value Retention Report
Every year, the National Auto Dealer’s Association (NADA) releases a report outlining the cars to perform best in their “Three Year Value Retention” test.
Porsche has absolutely dominated the “Luxury Sports Car” category, taking the top three positions by a pretty wide margin. Back in 2013, if you’d purchased a new Porsche sports car, it’s value has held up better than any other sports car in the segment. According to the graph above, you can see that a 2013 model 997-generation 911 would have performed best, while the relatively new 981 Boxster and 991-generation 911 lag just a few percentage points behind.
Granted, in 2013 the only 997-generation 911s you could buy were the Turbo and Turbo S, which might have something to do with its higher position on this list, but it’s still impressive that the second-hand Porsche market is still hot. When purchasing a new car, potential depreciation is a major factor for a lot of buyers. Granted, most of us Porsche buyers buy with our heart more than our wallets, but it’s heartening to know that a lot of that value is still there after 3 years.
NADA Used Car Guide uses a complicated algorithm to determine the winners of this test. Here’s an explanation of how they do it by NADA’s Senior Manager of Market Intelligence, Larry Dixon.
“The retention calculation is a function of a three month average of NADA Used Car Guide’s most recent average trade-in value, divided by a vehicle’s average typically-equipped Manufacturer Suggested Retail Price (MSRP). A vehicle’s rate of depreciation, and ultimately retention, is in part a product of the level of discounting at the time of new. For this reason, MSRPs did not include any incentives or rebates available at the time of purchase.”
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[Graph via NADA, Photo via Porsche]
